CEN.BK WACC - Weighted Average Cost of Capital

The WACC of Capital Engineering Network PCL (CEN.BK) is 8.0%.

The Cost of Equity of Capital Engineering Network PCL (CEN.BK) is 8.30%.

The Cost of Debt of Capital Engineering Network PCL (CEN.BK) is 6.80%.

	Range	Selected
Cost of equity	6.90% - 9.70%	8.30%
Tax rate	8.40% - 12.10%	10.25%
Cost of debt	6.60% - 7.00%	6.80%
WACC	6.8% - 9.2%	8.0%

WACC

CEN.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.59	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	9.70%

Tax rate	8.40%	12.10%
Debt/Equity ratio	0.17	0.17
Cost of debt	6.60%	7.00%

After-tax WACC	6.8%	9.2%


Selected WACC	8.0%

CEN.BK's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for CEN.BK:

cost_of_equity (8.30%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.59) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.